Inflation round-up

As Argentina's inflation rate continues to rise, it is increasingly obvious that some of the country's policies are working against each other in the battle to reduce cost of living. Under pressure from investors and creditors, including the International Monetary Fund, to repair finances, the Central Bank has raised interest rates to record highs, thereby dampening borrowing and domestic demand in an attempt to lower price pressures. Meanwhile, the Buenos Aires government has cut numerous subsidies, which has lifted relevant prices enormously. Currently, Argentina's is the third highest inflation rate in the world and the chances of it falling much are slim while such conflicting factors persist.

Venezuela has the world's highest inflation rate, of course, with the opposition-led National Assembly putting it at 2.69 million percent in February. Given the political - and practical! - chaos the country is going through, however, this figure is likely to be little more than a guess and may be politically motivated to some degree. There is no doubt, though, that inflation is very high indeed. On the other hand, bizarrely, fuel for vehicles is virtually free - if you can find it.

Uzbekistan has joined our high-inflation countries table, but largely on a technicality! Its inflation was probably above 14% throughout 2018 but, despite the government making significant reforms and improving the investment environment in recent years, as yet an official inflation rate is still only given once a year. At ECA we like our data to be as up-to-date as possible, so we haven't included the 2017 reading, which was 14.3%, for several months now.

There are no other additions to the table, but long-time member Malawi has left the club as its inflation has fallen under 10%: